Topic: Is the newly minted USDT, a driving force to surge of BTC ? - page 2. (Read 791 times)

"Tons of demand for Tether"? Or is it market manipulation? Constantly adding new USDT into circulation without regular audits from the regulators, looks shady to me. They may be printing money "out of thin air". If the "bomb" explodes, we should expect market prices for major crypto assets to go all the way down the drain in an instant. Afterwards, investors will lose confidence/trust in stablecoins. At least for a short period of time. Just like what happened with Terra/Luna.

Considering that the crypto market is full of risks, one must proceed with caution to avoid a financial disaster in the long run. As long as you don't invest more than what you can't afford to lose, there should be nothing to worry about.

So why are they constantly printing USDT at this time and putting it on the market? Today alone, Tether continued to print another 2 billion USDT to pour into the market. USDT is called an intermediary bridge between investors and the market, most people who want to invest will have to buy USDT with fiat currency before investing in bitcoin. Furthermore, if you follow onchain data, you will see that market makers like binance, DWL, Jumptrading... will all use stable coins if they want to drive the market. USDT printing is not the only catalyst or sign of market growth but it is also a good sign of market growth and everything is closely related.

Past behavior is rarely an indicator of future behavior especially with the ever-changing landscape of the crypto market.

It could be that the USDT is causing an "inflationary" pressure on BTC if the USDT is going straight into BTC.

The impactation source that this great height in Bitcoin has ascertained is usually derived from the forces of the demands and supplies.
The Bitcoin market price was able to surge this great height due to the fact that Investors is being overwhelmed recalling the past bull-run was surged at $69K in 2021 which presented a massive impression and now there are rumors speculating around pertaining how this current bull-run was going to break its history of meeting a new ATH. Most impressively, the current halving was a potential to beat the value of the last ATH which has got Bitcoin enthusiasts to keep holding their assets while some investors are accumulating more of Bitcoin against the bull-run season.
And fortunately, today 10-03-2024 the Bitcoin halving was able to reach the past ATH of 2021. Meanwhile... We hope more increments to come in the market and yet while enthusiasts awaits for the full dawn of the bull-run to reach its peak of ATH.
Hence the market is being attracted and influential, it is an unjust to say "Tether releasing of a billion dollar USDT was the driving energy of the impressive surge in the crypto markets today where the power of the demands and supplies does.

                                 
You can see for yourself about the current market price from the coin market cap

                                 
And these are factors determining the derivation power of Bitcoin price

what does the launch of usdt have to do with the rising price of bitcoin? from any perspective you won't be able to relate to this. however, if you connect the development of etfs and the halving process which is getting closer, then you will be able to find a connection between this and the increase in bitcoin prices that has occurred in recent times. and this rally will probably continue for the next few weeks.

I think the fault if from you, you didn't read properly.
The month of march has been a bearish period for Bitcoin since it's history and a lot of whales predicted it's price to go below 60k and probably rise again after March in the anticipated halving towards April


The price of bitcoin would only surge if that money is coming into the crypto market and yes sure it was, maybe a lot of people are exchanging theri fajt for the thether to buy bitcoin or maybe another alt but it still goes into crypto.

Crazy amounts of tether being minted. Just a few hours ago we had a $1B tether mint and then all of a sudden 30 mins later another $1B tether print. Basically $2B in a single day. At first I assumed it was a misprint.

We also had another $1B tether print yesterday. And the circulating market cap is well over $100B now. This implies tons and tons of money is flowing into tether.

Look at the tether premium it’s something like 0.2% which is usual. Means there is tons of demand for tether. The tether prints are lagging the supply.

Tether always puts new USDT in circulation. Other stablecoin issuers are more conservative in this regard. I wonder if Tether would be able to prove it really holds the USD it claims to have in its reserves? If it keep increasing the supply, it must provide regular audits like you've said. Something fishy is going on here.

I sure hope USDT doesn't lose its peg to the USD. Else, crypto market prices would decline at a very fast pace. The damage will be so severe that it will take quite some time for major crypto assets to go back to their original prices. It will be a great buying opportunity for new investors, but a huge loss for existing crypto holders. The market is widely unpredictable, so we can only hope for the best.

That's because most of these whales are people who experienced the previous cycles. People who watched bitcoin make new highs a year after the halving time and time again, but never before it, so it's obvious they'll expect this to continue.

The main driver is ETFs that are constantly buying. Tether could be contributing if they really hold as much bitcoin as they claim, because that would mean they always have to get more BTC to print new USDT, but who knows what they're really doing. We'd need regular audits for that.

I don't trust Tether.

Lets not forget about the halving hype. There's FOMO spreading on the market as we approach the anticipated event (which is due on April). This is also one of the major driving forces for the "pump". I believe Tether is doing some shady stuff when printing new USDT. It could be nothing more than pure market manipulation.

I couldn't imagine what would happen if USDT crashes all the way down the drain in an instant. It will be a huge blow to BTC's market prices. Other coins will experience a prolonged bloodbath due to their dependence on BTC as a reserve currency. I sure hope Tether complies with regulators to provide some level of assurance to investors. As long as the company is able to provide proof of its USD reserves, there should be nothing to worry about. In the meantime, enjoy the Bitcoin hype while it lasts.

For me, the most ironic fact about Tether/USDT is the fact that it relies on the biggest Ponzi scheme ever invented: the FED.

So yeah, even if Tether isn't a Ponzi scheme (highly unlikely, but let's assume for 1 second that it's a legit business), it doesn't really matter, because the FED is definitely a Ponzi:



So, if you don't trust the FED, why would you trust Tether?

This is all a big House of Cards waiting to collapse... will it happen any time soon? Who knows...

Some people speculate we will see a bank collapse by March 11th.

I strongly doubt it. FED will start printing more money, just like they did back in March 2020 due to COVID.

I think it's far more likely to see a USD collapse in 2026-2027 during Taiwan's invasion (good luck if you hodl nVidia, Apple, AMD stocks ). Most people don't even know what TSMC is...

I still believe that this halving cycle will be different from the previous halving phenomenon. Big spikes can still be felt in the market, plus the remaining mined Bitcoins are running low, which can create aggressive demand. Having a new ATH created and seeing some whales withdrawing Bitcoin from exchanges to their wallets shows that this will be an important opportunity for them not to hand over the remaining Bitcoin to large institutions. Most of the Bitcoin entries and exits are from Coinbase, based on the reference I saw from @whale_alert, perhaps the intention is clear that behind the Bitcoin entries and exits is due to the increasing demand from Bitcoin ETFs.

Has it crossed your mind that Tether can issue USDT out of thin air and sell them as dollar pegged? Has it also crossed your mind that Tether would never make the catastrophic claim that they print money out of thin air?

I don't understand why it seems such a big conspiracy theory to you. We've experienced a lot of unethical business behavior in the crypto space years now, especially in exchanges and stable coins which were operating under fractional reserve banking, providing zero protection on behalf of them, completely lacking regulation and deposit insurance. There exist court documents (as shown in the link above) which present how they use all these centralized coins to bail themselves out and engage in illegal activities in general.

You probably don't understand how fractional reserve banking works: https://en.wikipedia.org/wiki/Fractional-reserve_banking. If you practice fractional reserve banking, then you can't have 1-of-1 peg. You might present that your system contains 1 million dollars, but it collapses the moment people attempt to withdraw 1/10th of them.

What would Tether have to do with the bull run? In fact, printing more money is supposed to bring about inflation, which as a 1-1 peg with the dollar, is exactly what Tether is designed to do.

I'm pretty sure it's more about the impending halving than anything to do with other cryptocurrencies.


Tether at least has a significant amount of backing, even if it is not 100% backed by stuff.

Connichiua !

You are right Princess Leah. Bitcoin Price will rise much higher this year.  Imagine  one hundreds American Billionaires jumped to Bitcoin soon including Warren Bufffffffffffffet.  Bitcoin price will be million dollars.   The ultimate forecast is Bitcoin will soon match the gold reserve soon and it will be a bootstrap. 

So, usually when people bring up this conspiracy theory, they say Tether is 100% fake money. They say the whole thing is fake and all Tether is printed out of thin air. Which is of course completely absurd because that would mean nobody has ever traded fiat for Tether lol.

The whole way stablecoins work is people exchange fiat for the stablecoin and then the issuer holds the fiat. So the idea that its all fake and is worth $0 is just stupid. And yet this idea has persisted for so many years among the intellectually challenged...to put it nicely haha.

My other main point is if all this Tether is being printed out of thin air...where is it going??? I've never heard anyone ever claim they got Tether for free. Cuz if Tether is being printed out of thin air, then that means MILLIONS of people have gotten Tether for free. Or is the theory that all the exchanges are in on it or something lol and the entire global crypto exchange market is one big racket for Tether for some random conspiracy theory reason?, and the Tether company just hands out billions of USDT to exchanges so people can exchange fiat for it?? I've never seen the conspiracy theorists come up with a single piece of evidence to support their claim...after soooo many years of making the claims haha. While we all have evidence, simply by the fact that you can exchange fiat for USDT on most exchanges, that people are all the time literally buying 1 USDT for $1.

I think the one time I saw confirmation of Tether reserves it was that they only had like 78% backed or something like that because they got hacked I think, or maybe they were making risky investments with it. I dunno. I think no doubt they probably do some risky things with that money and haven't simply been holding the money in reserve like good little boys. Even Circle admitted a few years ago they weren't simply holding the funds for USDC and were trying to do stuff with that money. But the idea that its all just printed out of thin air, well thats an outrageous claim and it will continue to be a stupid claim until literally anyone can show any proof at all that Tether has ever printed any USDT out of thin air. Show evidence of what people/exchanges/etc are getting handed billions of USDT for nothing in return.


All I'm saying is, USDT is widely used and every day people are buying it with dollars, 1 to 1. So we know for a fact that USDT is not just fake money. Whether Tether the company has screwed up their holdings and done risky things, I have no clue. As I said at some point it was shown they only had like 70-something percent money backed, cuz of some theft or screw up, I don't remember if they had some sort of plan to fix that. That was like several years ago. I'm not arguing whether Tether has done everything by the book and has always had 100% reserves, because by their own admission it seems that has not always been the case. I'm saying that these lunacy "OMG Tether just printed another X billions out of thin air" claims by conspiracy theorists are just plain dumb. They ignore the obvious common sense explanation: lots of new money is coming into the market and USDT is the largest stablecoin so naturally lots of fiat is being exchanged for USDT which means a bunch more USDT needs to be issued, and instead they go with the "everything is fake" conspiracy theory haha. It's like the crypto equivalent of flat earthers lol.

So yeah, it amazes me that people still say Tether is fake in 2024. But I guess the type of people who are gonna believe this sort of nonsense in the first place are the type of people who are incapable of changing their mind or using common sense.

Anyway, I don't use Tether, never have, but whenever I see people making their crazy Tether claims I just think its both sad and funny and I get a good laugh that the same people are still making the same stupid claims after all these years with no evidence whatsoever and no use of common sense either haha.

I don't get your argument here. Where did I say Tether is all going into Bitcoin? I mentioned that Bitcoin haters like to use this conspiracy theory to attack Bitcoin and try to claim that Bitcoin's value is entirely built on "fake" money. I didn't say anything about where Tether goes. Obviously when people exchange dollars for Tether they put it into whatever cryptocurrency they want to.

A billion dollars will not cause a change in the direction of Bitcoin, especially since the market capacity exceeds 1.3 trillion dollars. A billion dollars is a drop in the ocean, but the issuance of stable currencies leads to reducing the price of Bitcoin. The ease of converting Bitcoin into dollars makes the possibility of the price rising limited, as speculators can sell, exchange Bitcoin into stablecoins and then buy again.
If there were no stablecoins, I am sure that the price of Bitcoin would rise sharply and dump deeply.

The fact that Bitcoin went to ATH before the halving, even though people largely expected it to happen well after it, just shows once again that Bitcoin halving doesn't have much to do with the price. The price can go up or down regardless of when halving happens.
As for USDT, I see news about it getting to a record-high market capitalization, but the news I can find about 1 billion new coins dates back to November 2023, which was a while ago (and it's only a couple of articles that mention it). So a source to back up that statement would be appreciated. Bitcoin is traded a lot in trading pair with USDT, so it might make sense that changes in USDT supply can affect Bitcoin price.

https://www.microstrategy.com/press/microstrategy-announces-proposed-private-offering-of-600-million-of-convertible-senior-notes_03-04-2024
"March 4, 2024 — MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced that it intends to offer, subject to market conditions and other factors, $600 million aggregate principal amount of convertible senior notes due 2030 (the “notes”) in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). MicroStrategy also expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $90 million aggregate principal amount of the notes. The offering is subject to market and other conditions, and there can be noassurance as to whether, when or on what terms the offering may be completed."
__
Guys, you must agree that such euphoria cannot last long.